Updating an obsolete reference to the National Association of Securities Dealers, Inc.; eliminating an obsolete provision in the Wisconsin Consumer Act; updating a cross-reference to a federal law definition of high-cost mortgage; information included on a notary public's stamp and clarifying terminology and removing statutory duplication relating to notaries public (suggested as remedial legislation by the Department of Financial Institutions)

Current law restricts a merchant's ability to require balloon payments in certain consumer credit transactions. However, current law specifies that those restrictions do not apply to a transaction entered into on or after November 1, 1984. The bill eliminates those restrictions.

The bill also updates a cross-reference to federal law in a Wisconsin law regulating high cost mortgage lending. The Wisconsin statute defines “covered loan” by, among other things, a cross-reference to a definition under federal law for “high-cost mortgage.” The federal law provision was renumbered and amended in 2010, resulting in the cross-reference in Wisconsin law becoming outdated. The bill changes the cross-reference to refer to the current federal law definition.

Additionally, the bill clarifies the information to be included on a notary public's stamp. The bill also clarifies certain terms and removes statutory duplication relating to notaries public.

Under current law, the Department of Financial Institutions issues commissions to notaries public. A notary public's notarial act must be evidenced by a certificate to which an official stamp is affixed or embossed if the notarial act relates to a tangible record or is attached to or logically associated with if the notarial act relates to an electronic record. An “official stamp” is defined as a physical image affixed to or embossed on a tangible record or an electronic image attached to or logically associated with an electronic record. Current law specifies that the official stamp of a notary public must include the notary public's name, jurisdiction, commission expiration date if applicable, and other information required by DFI.

Current law also requires a notary public applicant to provide to DFI an impression of his or her official seal or an imprint of his or her official rubber stamp.

Except with respect to an “official stamp,” the seal or rubber stamp may include only the following: “Notary Public," “State of Wisconsin," and the name of the notary.

Except when a notary public properly uses an “official stamp,” the notary public must attest certain instruments by a clear impression of his or her seal or imprint of his or her rubber stamp, along with a written or stamped date of the notary public's commission expiration or statement that the commission is permanent.

The bill makes various changes to reconcile a substantive inconsistency, to create consistency in the use of terms, and to eliminate statutory duplication. The bill specifies that the “official stamp” of a notary public may, but is not required to, include the notary public's commission expiration date if applicable. Because the definition of “official stamp” includes what is elsewhere referred to in current law as a seal or rubber stamp, the bill harmonizes these terms, consistently adopting the term “official stamp.” Finally, the bill clarifies current law by eliminating duplication in certain statutory provisions.

For further information, see the Notes provided by the Law Revision Committee of the Joint Legislative Council.